Support The Moscow Times!

Russia Faced With 'Massive' Liquidity Problem, Says Sberbank Chief

German Gref

The head of Sberbank, Russia's largest lender, said Thursday that the banking sector was grappling with huge liquidity problems, and warned that there was no easy money for Russian companies to be found in Asia, the Prime economic news agency reported.

“We have a massive, grand liquidity dislocation and already 13 percent of banking sector funding is “short” money from the Central Bank,” German Gref told a conference in Moscow. The Central Bank offers short-term loans to financial institutions as part of its monetary policy.

Gref added that the liquidity problems were making it much harder, if not impossible, for banks to fund long-term projects, particularly those relating to infrastructure and transport.

Russia's financial system has been placed under intense pressure by a tanking economy and Western sanctions on Moscow that have cut off access to U.S. and European Union capital markets.

While deteriorating relations with the West have fueled speculation that Russian companies could raise money in Asian markets, many have warned that such a switch cannot be achieved quickly.

Gref said Thursday that he had traveled to most major Asian capitals in recent months along with the head of the Russian Direct Investment Fund, Kirill Dmitriyev, in search of financing.

“I want to say that there is not a long list of those willing to stand in line to invest in our country. It is us who are standing in line for money, most of all from sovereign funds,” Gref said, Prime reported. “There is colossal competition for money.”

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more